States clamp down on mining, coal seam gas

Australia’s largest mining states have launched a controversial crackdown on mining and coal seam gas development aimed at protecting prime agricultural land.

The Queensland government is planning to introduce tough new environmental laws late this year which could rule out mining and coal seam gas development in areas deemed as “strategic cropping land".

The tough new legislation, the first of its kind in Australia, would rule out minerals development on strategic cropping land before native title, social, economic and environmental concerns are raised under the existing Environmental Impact Statement process.

Mining and resources companies, including Bandanna Energy, Cockatoo Coal, EndoCoal, Stanmore Coal, Ambre Energy, MetroCoal and Lodestone Energy, own projects that are likely to be affected by the new legislation.

The Queensland Department of Environment and Resource Management (DERM) yesterday revealed more detail about its strategic cropping land policy.

“We are leading the nation in policy that safeguards our best cropping land; other states are now following suit," Environment and Resource Management Minister
Kate Jones
said in a statement yesterday.

The radical new legislation will draw a line in the sand between mining lobby groups with deep pockets and the large pool of voting farmers who could turn on the government if their demands are ignored.

It follows similar battles against gas exploration and coalmining in Australia’s largest mining state, Western Australia, and major coal producing state NSW.

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WA Premier
Colin Barnett
said recently he would be “prepared to act" to block a proposed coalmine 15 kilometres from the town of Margaret River in the state’s famous wine region.

The project was knocked back by the Environmental Protection Authority in March, in part to protect what that state’s environmental watchdog said was the area’s “social fabric".

The mine’s proponent has lodged an appeal against the decision, prompting a fierce reaction from the Premier.

In NSW last May, the former Labor government announced with much fanfare the rejection of the Bickham Coal Mine in the Upper Hunter Valley after a successful and well-funded campaign by the thoroughbred industry.

The newly elected Coalition’s policy on strategic land use will be drawn up over the next year after tough talk, largely driven by the Nationals.

Mining industry executives and equities analysts alike have expressed concerns over government plans to protect agricultural regions from development.

But farmers warn that mining and coal seam gas projects in areas of strategic cropping land could permanently damage land used to produce livestock, cotton and grain.

Drew Wagner, senior policy officer with Queensland farming lobby group AgForce, estimated cotton, grains and livestock produced from prime cropping land in Queensland was worth more than $1 billion.

Under DERM’s new strategic cropping land policy, mining and coal seam gas projects located inside Strategic Cropping Protection Areas will undergo assessment against eight criteria selected by the government.

Two Strategic Cropping Protection Areas – one in Central Queensland and one in Southern Queensland – cover about 4.78 million hectares of the state.

If the criteria are met, the land will be determined strategic cropping land and miners will have to prove that development plans would not permanently alienate the strategic cropping land. If they fail to do so the projects may not be able to proceed.

Under new transitional arrangements which apply from yesterday, proposed mining projects that have had the terms of reference approved for an environmental impact statement may be able to proceed. Existing projects may also be expanded under the new policy.

The Queensland Resources Council has warned that dozens of mining and coal seam gas projects in Queensland, and in turn the first stage of the proposed $5 billion Wiggins Island Coal Terminal, could be affected by the new laws.

“There’s a knee-jerk reaction going on among many governments that are losing faith in their tried and tested processes of environmental impact statements," chief executive Michael Roche said.